I know, I know, Tesla can barely meet demand as it is already. They’re pumping out cars as fast as they can, and batteries can only be produced so fast, even with the investment Elon has made in the giant gigafactories.
However, there’s one thing missing from all this. What usually happens in a market when demand outstrips supply? More demand equals Tesla can sell the cars for much more, thus helping Tesla’s bottom line. Doesn’t have to be Apple prices, but they can add on at least another 20-50%.
Do I think this is good for the customer? Not necessarily (at least not in the short term), but for a company that needs to answer to investors (and using that profit to invest in more gigafactories), a higher premium makes sense.
I’m curious why they aren’t already doing this. I hate advertising as much as anyone, but there’s no doubt the masses are susceptible to a degree, and it’s not always enough for a product to be excellent – it has to occupy mindspace.
Now that other car companies are jumping on the EV bandwagon, Elon has set the ball in motion and essentially achieved his goal of accelerating the world to sustainable transport, so there’s no risk there any more. Now it’s time to compete, and compete as hard as possible.